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Bank Of America Signals Extended Oil Price Rise Over Failed Hormuz Reopening
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Leadership Newspapers
The warning comes as negotiations over reopening Hormuz remain unresolved and tanker traffic through the world’s most important oil chokepoint remains a fraction of pre-war levels.
Blanch said only around 5 to 10 ships per day are currently passing through Hormuz, compared with roughly 140 before the war.
“We have enough crude oil for now, but we have true shortages in diesel markets, gasoline markets and also global gas,” Blanch said.
“We don’t have the inventories that we used to have,” Blanch said, warning that failure to secure an agreement could bring another escalation.
Bank of America is also urging investors to become more defensive as its bull-and-bear indicator climbs to 9.7, its highest since 2021.